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ASX 200 down a huge 120 points to 5220 after jitters around the world continue. Few positives with banks and resources leading the market down with nary a bounce in sight. Asian markets down around 2% as AUD down to 75.36c and US futures slip another 90 points.

STOCKS AND SECTORS

All sectors were sold off heavily with bargain hunters on the sidelines awaiting more ‘Fedspeak’ this evening in Chicago from Lael Brainard, a known dove. Just to complicate things a little Dennis Lockhart and Neel Kashkari from the non-voting Fed members will also be speaking tonight ahead of the media blackout in front of the 20-21st September meeting.

  • Banks understandably weak with Commonwealth Bank (CBA) -0.92% trying hard to stay marginally ahead of the pack but under $70 for its lowest in three years. 25 years ago CBA joined the ASX and now has delivered a 9500% total return since then National Bank (NAB) -2.56% the worst of the four with the basket now at $151.84c. Wealth managers predictably hit with Macquarie Group (MQG) -3.68% and BT Investment Group (BTT) -4.33% the worse affected. Insurers suffered although QBE +0.62% with US earnings and increasing returns from US bond market was able to eke out a gain.
  • REITs too suffered big losses with Scentre Group (SCG) -2.83% and Dexus Property (DXS) -4.27%
  • Resources fell into a crumpled heap in the corner led by BHP -4.04%, South32 (S32) -4.07% and WorleyParsons (WOR) -6.09%.
  • Energy stocks battered and bruised with Santos (STO) -5.25% the worst of the bunch with Origin Energy (ORG) -4.25%
  • Nowhere to run in defensives stocks either with Telstra (TLS) -1.38% heading below $500 and
  • Healthcare stocks, long the bastion of safe haven money weighed with Ansell (ANN) -2.98%, Mayne Pharma (MYX) -2.31% and Pacific Smiles (PSQ) -3.35% not so smiley. CSL -1.31% outperformed but no consolation really.
  • Infrastructure stocks were also weak as the crowded trade gets unwound Transurban (TCL) -2.03%, Sydney Airport (SYD) -6.28% and Macquarie Atlas Roads (MQA) -3.62%. Utilities whacked too Infigen (IFN) -9.84%, APA (APA) -2.33% and AGL -2.92%.
  • ‘Cuppie’ stocks failed to find any support with A2Milk (A2M) -4.13%, Murray Goulburn (MGC) -2.06% and Bellamy’s (BAL) -2.44%
  • Speculative stock of the day: De Grey Mining (DEG) +20.00% after announcing high grade zinc mineralisation at its Tabba Tabba project. The mineralisation occurs from surface and is open at depth.

CORPORATE NEWS

  • Elders (ELD) +5.14% after announcing it will no longer undertake long-haul exports of live animals and will divest its short-haul and air-freight live animal export businesses. Management has guided investors to current-year “underlying EBIT” of $54-57m, which is better than market expectations.
  • Credit Corp (CCP) -0.30% after announcing it had bought the National Credit Management business from Thorn Group (TGA) -3.82% for $22.6m. The purchase includes a purchase debt ledger of around $20m plus 90 staff and 120 agency agreements.

ECONOMIC NEWS

  • The yield on the 10-year government bond has risen back above 2% to 2.05% up 4.48%.
  • The total value of owner occupied housing commitments excluding alterations and additions fell 0.1% in trend terms, and the seasonally adjusted series fell 3.1%. The seasonally adjusted series for the value of total personal finance commitments rose 3.9%.

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ASIAN NEWS

  • Samsung shares have dropped 6.9% to their lowest level in nearly two months after the company told customers to return their new Galaxy Note 7 smartphones due to fire-prone batteries. Nomura said it had cut its forecast for Samsung’s third-quarter mobile operating profit by 900 billion won to 3.1 trillion won in the wake of the Note 7 recall.
  • China is already the top investor in Afghanistan and now it has a railway connection from the east of China to Hairatan now taking goods two weeks instead of the usual three to six months. This is another part of the One Belt, One Road policy.

EUROPE AND US

Expect heavy falls at the opening for European markets of around 1.5%

  • Three former Tesco executives have been charged as part of a continuing investigation into accounting irregularities at the supermarket giant in 2014.
  • Google’s DeepMind unit, which is working to develop super-intelligent computers, has created a system for machine-generated speech that it says outperforms existing technology by 50.
  • Expect a lot more focus on Hillary’s health following collapse at a 9/11 memorial day function and now the cancellation of her Californian trip.
  • 56 days and counting.

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And finally…………………….

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A lady went into a bar in Waco and saw a cowboy with his feet propped up on a table. He had the biggest boots she’d ever seen.
The woman asked the cowboy if it’s true what they say about men with big feet are well endowed.
The cowboy grinned and said, “Shore is, little lady.Why don’t you come on out to the bunkhouse and let me prove it to you?”
The woman wanted to find out for herself, so she spent the night with him.
The next morning she handed him a $100 bill.
Blushing, he said, “Well, thankee, ma’am. Ah’m real flattered. Ain’t nobody ever paid me fer mah services before.”
“Don’t be flattered. Take the money and buy yourself some boots that fit.”

Clarence

XXXX

NT Markets

Get a Global take on things at http://www.ntmarkets.com

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